Support rates cap, SA premier urges Labor

The fate of legislation to cap increases in council rates across South Australia will be determined in state parliament's upper house with Premier Steven Marshall urging the opposition to declare its hand and support the bill.

Mr Marshall says the bill will be passed in the lower house on Tuesday and will go immediately to the Legislative Council.

It's unlikely to get support from crossbench MPs, making Labor's stand on the issue crucial.

The premier told reporters it was time for Labor to make its position clear.

"There's a schism in the Labor Party room," he said.

"They haven't been able to decide whether they're on the side of the ratepayers of South Australia or some in their party who don't see the benefit of capping increases in council rates."

The government's legislation will limit the size of rate rises each year, with the cap to be determined by an independent regulator.

It's drawn criticism from across the local government sector.

Labor frontbencher Chris Picton said the opposition would allow the legislation to pass the lower house and would make its position known in the upper house.

"We've been undertaking a consultation process with this over the past few months and that's continuing with local government at the moment," Mr Picton said.

"Our position will be very clear before it's debated in the Legislative Council."

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